Market-driven categories lead in value growth
Of the 21 product and service categories tracked in BrandZ™ Top 100 Most Valuable Chinese Brands, 12 categories rose in value, seven declined and two remained the same.
Retail led the categories in brand value growth with a rise of 3,827 percent driven by Alibaba, which appeared for the first time in the BrandZ™ Top 100 Most Valuable Chinese Brands.
With Alibaba removed from the calculation the retail category still appreciated in value a healthy 64 percent.
Technology surpassed financial institutions as the category with the largest total brand value, $106.9 billion or almost one-quarter of the total brand value of the BrandZ™ Top 100 Most Valuable Chinese Brands 2015.
These are important developments because they reflect how the liberalization of China's economy is unleashing dramatic growth in the value of market-driven brands.
Eight of the nine brands in the technology category are market driven, in contrast to the nine financial institutions, which are predominantly SOEs (State Owned Enterprises).
The ascendancy of market-driven brands also is evident in the growth leading categories over the past five years. Between 2011 and 2015, retail appreciated 1,893 percent in brand value, driven by Alibaba and other market-driven brands. Technology increased 327 percent in brand value.
Brand value is concentrated among a few categories, with the technology and financial institutions categories comprising almost 45 percent of the total value of the BrandZ™ China Top 100.
Retail led category value growth…
... Value was concentrated in a few categories...
The technology and banks categories together comprise 43.7 percent of the value in the BrandZ™ Top 100 Most Valuable Chinese Brands.
... Retail and technology led 5-year growth
Two categories in which market-driven brands predominate far outpaced the growth of other categories over the past five years.